💰 Key Numbers at a Glance
- ✅ PMEGP: Subsidy up to 35% on project cost up to ₹50 lakh
- ✅ Mudra Loan: Up to ₹10 lakh, no collateral
- ✅ CGTMSE: Collateral-free guarantee up to ₹2 crore
- ✅ CLCSS: 15% capital subsidy on machinery up to ₹1 crore
- ✅ SMILE: Soft loans from ₹10 lakh for manufacturing upgrade
The biggest mistake first-time nut bolt plant owners make is investing their own savings without first exploring government funding. India has several schemes specifically designed to support MSME manufacturing units — and a nut bolt plant qualifies for most of them.
Used correctly, you can reduce your out-of-pocket investment significantly, lower your borrowing costs and even get outright grants for machine purchases. Here are the five most relevant schemes for 2025.
PMEGP — Prime Minister's Employment Generation Programme
PMEGP is the most powerful scheme for anyone starting a new nut bolt plant. It provides a direct government subsidy (not a loan — a grant) on your total project cost, combined with a bank loan to cover the rest.
How it works:
- You contribute 5–10% of project cost from your own funds
- Bank provides the remaining loan
- Government provides a subsidy of 15–35% of project cost (based on location and category)
- Urban areas: 15% general category, 25% SC/ST/women/ex-servicemen
- Rural areas: 25% general category, 35% SC/ST/women/ex-servicemen
Eligibility:
- Indian citizen aged 18+
- Minimum 8th pass education (for projects above ₹10 lakh)
- New businesses only — not applicable to existing units
- Apply through KVIC portal, KVIB or District Industries Centre (DIC)
Pradhan Mantri Mudra Yojana (PMMY)
Mudra loans are ideal for covering working capital — raw material stock, salaries and day-to-day expenses while your plant ramps up. No collateral required, no guarantor needed.
- Shishu: Up to ₹50,000 — for very early stage
- Kishore: ₹50,000 to ₹5 lakh — for expanding small units
- Tarun: ₹5 lakh to ₹10 lakh — most relevant for new nut bolt plants
Apply at any scheduled commercial bank, RRB, cooperative bank or microfinance institution. Approval is generally fast (2–4 weeks) compared to other schemes.
CGTMSE — Credit Guarantee Fund Trust for MSEs
If you need a larger bank loan (for machines, shed construction or land) but don't have collateral property to offer, CGTMSE is your solution. The government guarantees up to 85% of your loan — meaning banks will lend without requiring you to mortgage assets.
- Coverage: 85% for loans up to ₹5 lakh; 75% for loans above ₹5 lakh
- Maximum loan amount: ₹2 crore
- Available for both new and existing MSME units
- Combined well with PMEGP or standalone bank term loans
CLCSS — Credit Linked Capital Subsidy Scheme
If you have an existing plant and want to upgrade from old friction-clutch machines to modern pneumatic-clutch cold heading or thread rolling machines, CLCSS gives you a 15% capital subsidy.
- 15% upfront capital subsidy on institutional credit up to ₹1 crore
- For technology upgradation in manufacturing units
- Buying modern bolt-making machines qualifies
- Apply through your bank or SIDBI
SMILE — SIDBI Make in India Loans for Enterprises
SMILE is a soft loan scheme from SIDBI for MSMEs looking to set up new units or expand under the Make in India initiative. It provides longer repayment periods at lower interest rates than standard term loans.
- Minimum loan: ₹10 lakh for equipment, ₹25 lakh for others
- Repayment: Up to 10 years with a 3-year moratorium
- Interest rate: Competitive, below standard bank rates
- Both manufacturing and service sectors eligible
Which Scheme Should You Apply for First?
For a brand new nut bolt plant: Start with PMEGP — it gives you the largest outright grant (up to 35%). Combine it with a Mudra Tarun loan for working capital.
For an existing plant wanting to expand: Apply for CGTMSE to secure a collateral-free bank loan, and stack CLCSS on top if upgrading machines.
🏭 Get Your Machines Sorted First
Most banks will ask for machine quotations as part of the PMEGP or CLCSS application. Get a formal quotation from Samrat Machine Tools before applying — it speeds up your loan processing.